Standard & Poor’s on Tuesday raised its rating on Watauga County’s general obligation bonds to AA-minus from A-plus. The upgrade, and a stable outlook, affect $11.5 million of outstanding GO debt and reflects strong growth in the tourism sector, continued development of the county’s residential base, the county’s healthy local economy anchored by Appalachian State University, and historically low levels of unemployment, as well as successful ongoing management of its strong financial position.“Ongoing residential development over the next decade … will further strengthen the already healthy tourism and residential sectors, as reflected in the stable rating outlook,” Standard & Poor’s analyst Linda Yip said. “Despite the increase in development over the next few years, we expect that management will be able to continue to maintain the county’s strong financial position as it addresses any arising capital needs.” Watauga County is located in the Blue Ridge Mountains of western North Carolina, bordering Tennessee. The county’s population has experienced slow growth over the past six years, increasing just 1.7% to an estimated 43,406 in 2006.Watauga’s unemployment rate of 2.3% remains lower than both state and national averages. A recent property revaluation for fiscal 2007 increased the county’s tax base by about 31.2% to an estimated $7.7 billion, which represents a high per capita value of $177,222, Yip said.
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Despite higher yields, muni to UST ratios remain rich. Ratios look "progressively richer" moving into the five- to 10-year part on the curve, with the 10-year spot "still far more attractive in taxables versus tax-exempts," J.P. Morgan said.
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The growing federal debt level may pressure lawmakers to retract or reduce the tax-exemption for munis to generate revenue, some market participants argue.
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It's a time of change, challenge and opportunity in the infrastructure and P3 space, Patrick Harder said.
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The meeting was attended by trade organizations, MSRB board leadership, Finance Committee members and MSRB senior staff.
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The Federal Emergency Management Agency is asking for an additional $9 billion for this year in hopes they don't run out of funds in August as they're currently slated to.
April 17 -
The SEC won its case against Richard Ganci and Richard Tortora of Capital Markets Advisors over conflicts of interest present in their fee arrangement in connection to a $119 million offering for the City of Rochester, New York.
April 17